Stocks advanced in moderate trading Monday, as big money chased merger deals, and other investors struggled not to be left behind.
Despite the taint of the subprime mortgage woes, bank stocks rallied after Barclays of London said it was in talks to acquire megabank, ABN Amro of the Netherlands.
Community Health Systems disclosed a plan to acquire Triad Hospital, and a private-equity group agreed to acquire Downers Grove-based ServiceMaster.
The Dow Jones industrial average gained 115.76, to 12,226.17, nearly wiping out last week’s loss. Only two of the 30 Dow industrials — Intel and General Motors — declined.
Optimism that the Federal Reserve will hold interest rates unchanged after a policy meeting Tuesday and Wednesday helped boost stocks.
The broader Standard & Poor’s 500 index rose 15.11, to 1402.06, led by Exxon Mobil, Microsoft and AT&T. AT&T added 60 cents, to $37.58, fully recovering its loss from the market slide on Feb. 27.
All 10 of the major sectors in the S&P 500 index advanced. Since the index peaked on Feb. 20, utilities, energy and telecommunications have been the best-performing sectors.
New York Stock Exchange volume reached 1.43 billion shares, down from more than 2 billion shares Friday, when stock-related futures and options contracts expired. Winners outnumbered losers by more than a 3-1 ratio.
Nasdaq volume totaled 1.67 billion shares, as winners topped losers by a 2-1 ratio.
LOCAL STOCKS: JPMorgan boosted its investment rating on Deerfield-based drugstore chain Walgreens to “overweight” from “neutral.” Shares rose 27 cents, to $46.53.
*Prudential Equity Group upgraded Kraft Foods, Northfield, to “neutral” from “underweight.” Shares added 48 cents, to $30.90.
TREASURY AUCTIONS: Interest rates declined at the weekly auctions of 3- and 6-month Treasury bills. The discount rate on 3-month bills was 4.93 percent, down from 4.96 percent at last week’s auction. The rate on 6-month bills was 4.91 percent, down from 4.92 percent last week.
The coupon-equivalent investment rates at Monday’s auctions were 5.07 percent for 3-month bills and 5.12 percent for 6-month bills.
